Stuart Haxton Company
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Stuart Haxton Company has a large emphasis in appraising residential subdivisions. Stuart has appraised over 50 subdivisions in the Boise area.
This is a Complete Self-Contained Appraisal on a proposed, typical-designed residential subdivision.
This is the valuation of a phase of completed lots (not houses).
Income Approach, Cost Approach, & Sales Comparison Approaches.
This is the appraisal of a typical entry-level subdivision - for an excellent template - including format, data, analysis, and commentary that will exceed your expectations! A good appraisal should look good, make sense, and not leave good questions unanswered. This does just that.
Of course this appraisal is specifically tailored to my market area, but is easily modifiable to other markets. For comparison, the Boise market data presents a good template because this market is generally typical. The market has been consistently in good balance, competitive, and had stable population growth. The Boise MSA has a population of around 500,000. Boise is a steadily growing area and has quite efficient and stable real estate markets.
This full subdivision appraisal report includes the Income Approach, Cost Approach, and Sales Comparison Approach including Subdivision Lot Sales, Tax Payments, and Market Economic Analysis relevant to residential subdivisions. For the Cost Approach and Income Approach I include an analysis summary of Entrepreneurial Profit, based on results from my recent and in-depth study of the Boise market area.
For accurate analysis, I include all of the applicable Excel spreadsheets: Discounted Cash Flow Analysis, Cost breakdown, Subdivision Taxes - lots/land, Bulk sales of lots, Comparable Subdivisions, Pricing of Lots, Home Sale Statistical analysis for new and existing homes, Land Sales, and Land Sale Adjustments.
The Sales Comparison Approach for subdivision phases analyzes single bulk sales of subdivision lots and phases. This analysis of Comparable Bulk Sales is included.
A 2 page document of detailed discussions of 4 problem subdivisions. Short but valuable to the developer that might make the same mistakes.
These documents are PC versions of Word 2007 and Excel 2007.
After purchase - call or email. We will then quickly send by e-mail!
Stuart Haxton Company
270 W. Parliament, Boise, ID
Stuart Haxton Company is a commercial real estate firm located in Boise, Idaho. Stuart Haxton has appraised residential subdivisions lots, land, office, retail, and more. His clients includes banks, investors, developers, owners and estates.
Boise Subdivision Research
An example market: the Boise Idaho market
during the stable growth period analyzed 1998 to 2004
by Stuart Haxton
• Problem Subdivisions
Some Subdivision Principles
for the Boise Idaho Market
by Stuart Haxton
• Developing residential subdivision lots requires a substantial amount of money and a good knowledge of costs and market dynamics. A typical entry-level subdivision of 35 lots may cost $1m to develop, approximately 70% of which can be borrowed. On top of this $1m is about 15% more cost to sell the lots (loan interest, taxes, management, r.e. commissions, etc.) .
• Few people have a competent knowledge of the market for subdivisions - basically only a limited number of good subdivision developers and real estate appraisers who specialize in subdivisions.
• The market for subdivision land and lots is fairly efficient.
• In general, if you pay market value for land, you need to sell your finished lots at a rate of 2.0 to 3.5 per month for your subdivision to be feasible. If you are not selling lots at this rate your problems are likely: 1) lots are priced to high (or too low if they are selling faster), 2) subdivision location or design is not good, 3) the homes are designed wrong causing a decreased marketability of remaining subdivision lots.
• If you want to develop a new type of subdivision lot or a new type of house within your subdivision – designs that are non-existent or rare in the market – you should be very careful. Respect the market, because there is probably a good reason it is not being done. The reason: lack of demand.
• Many of the larger developers buy land 1 to 4 years in advance of development. Most of this land is not offered for sale so developers have to solicit land owners. Consequently, land owners may not maximize their prices (since their land is not properly priced or marketed).
• Cities commonly cause home prices to increase for all home buyers because of their restrictive zoning codes and requirements that do not let developers build what buyers actually want. This is an especially undue hardship to lower-income home buyers. Buyers don’t necessarily want larger lots, detached homes, and overbuilt parks and road improvements.
• “Bubbles” in housing markets occur when home prices increase beyond what the local job market can support or sustain. Buying a home is not always a good investment, especially in a high-priced, overzealous market.
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